Graphic Packaging Notified by NYSE of Noncompliance with Listing Standard
Marietta, Georgia, USA, 11 February 2009 -- /PRNewswire/ -- Graphic Packaging Holding Company (NYSE: GPK) announced today that the New York Stock Exchange has notified the company it is now considered to be "below criteria" set by NYSE regulations. The NYSE requires that the average 30-day closing price of a listed company's common stock be above USD 1.00 per share. As of 06 February 2009, the date of the NYSE notice, the 30 trading-day average closing price of Graphic Packaging Holding Company's common stock was USD 0.98 per share.
David Scheible, president and chief executive officer of Graphic Packaging Holding Company, commented, "We do not believe the current stock price is a reliable indicator of the company's strong financial and operating position. Graphic Packaging is focused on stable food and beverage end use markets, which tend to be recession resistant, and has major positions with all the large consumer based companies that serve those markets. Graphic is executing well on the USD 90 million synergy plan related to our combination with Altivity Packaging, has ample liquidity, and no debt maturities before August 2011. The company is comfortably within its one required senior secured financial covenant and is well within the range of USD 100-120 million of annual cash flow for debt reduction that we discussed on our 2008 third quarter conference call."
Under the NYSE's rules, the company has six months from its receipt of the notice to bring its average common share price back above USD 1.00. During the interim, Graphic Packaging Holding Company's common stock will remain listed on the NYSE, subject to compliance with other applicable NYSE continued listing requirements.
Graphic Packaging Holding Company will notify the NYSE within the required 10 business day period that it intends to cure the deficiency.
Graphic Packaging Holding Company, headquartered in Marietta, Georgia, is a leading provider of packaging solutions for a wide variety of products to food, beverage, and other consumer products companies. The company is one of the largest producers of folding cartons and holds a leading market position in coated-recycled boxboard and specialty bag packaging. Additional information about Graphic Packaging, its business, and its products is available at www.graphicpkg.com.